Upasna Bhardwaj, Chief Economist, Kotak Mahindra Bank
“The government has continued to focus on fiscal consolidation. The FY27 fiscal deficit at 4.3% and net borrowing is in line with our expectations. However, the sharply higher than expected gross borrowing of Rs17.2tn is expected to weigh heavily on market sentiments. No buybacks or switches have led to the surprise upside to the gross borrowing.”
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Reaction quote on Union Budget 2026 by Shekhar Bhandari, President – SME, Kotak Mahindra Bank
” The Union Budget charts a growth-oriented path while staying anchored in fiscal discipline. With the fiscal deficit at 4.4% this year and projected at 4.3% next year, it provides stability as Bharat advances towards its 2047 vision.
The emphasis is on durable capacity building. The revival of 2,000 industry clusters and the ₹10,000 crore MSME Growth Fund reaffirm the central role of SMEs and manufacturing in long-term growth.
A clear shift is the focus on building “Champion MSMEs” through a three-pronged approach—equity support, liquidity support via TReDS, and professional support through Corporate Mitras, particularly in Tier-II and Tier-III towns.”
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Union budget quote from Pinakin Simaria, Head – Agri Business Group, Kotak Mahindra Bank for your reference
“Union Budget FY27 is directing long-term shift of stance by focusing on innovation, investment led growth & climate resilience at the same time ensuring priorities for SMF through its ‘Third – Kartavya Framework’ focusing on productivity enhancement & entrepreneurship. Agriculture is now being treated as a ‘credible engine of economic growth’ with growth rate from FY16 to FY25 at 4.45%, the highest in recent decades. Technological optimism with Bharat Vistar, high-value crop diversification, and modernization through the Seed Bill 2025/2026 are key steps, alongside potential R&D fiscal support to encourage development of new crop-protection and seed innovations.”
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